Following earlier news that Morgan Stanley intended to provide its clients with access to funds that would promote Bitcoin ownership, the investment banking firm has now agreed to permit Bitcoin exposure in many institutional funds. In a filing with the US Securities and Exchange Commission today, the global corporation confirmed that it will offer exposure to the hallmark blockchain as an investment option through shares of Grayscale Bitcoin Trust (GBTC) or cash-settled futures.
According to the SEC filing, which was released on March 31, 2021, the firm wrote:
“Certain Funds may have exposure to bitcoin indirectly through cash-settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) (“GBTC”), a privately offered investment vehicle that invests in bitcoin. To the extent a Fund invests in bitcoin futures or GBTC, it will do so through a wholly-owned subsidiary, which is organized as an exempted company under the laws of the Cayman Islands (each, a “Subsidiary”). A Fund may at times have no exposure to Bitcoin.”
Among the funds listed in the filing are the Advantage Portfolio, Asia Opportunity Portfolio, Counterpoint Global Portfolio, Developing Opportunity Portfolio, Global Advantage Portfolio, and Global Opportunity Portfolio, among others:
Last month, the investment bank sent an internal note to its financial advisers on access to three Bitcoin-related assets. Two of the above funds come from Mike Novogratz’s blockchain business Galaxy Digital. The third fund was launched in partnership with FS Invests, a wealth management agency, and NYDIG, a Bitcoin-focused investment company.
The investment bank agreed to limit access to Bitcoin to only affluent customers who were thought to have a “aggressive risk tolerance.” These clients must have at least $2 million in assets owned by the company, while financial firms must have at least $5 million.
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